DBS Bank India Limited (DBIL) said on Friday that it has received capital infusion of Rs 2,500 crore from DBS Bank Limited, Singapore, to support the India franchise. This follows the amalgamation of Lakshmi Vilas Bank (LVB) with DBIL, which came into effect on 27 November.

DBIL is well-capitalised and its capital adequacy ratio (CAR) remains above regulatory requirements after the amalgamation.

The amalgamation provides stability and better prospects to LVB's depositors, customers and employees following a period of uncertainty, the bank said in an official statement.

Once the integration is complete, customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services which have won multiple global accolades, the bank added.

On 17 November, the Reserve Bank of India imposed a one-month moratorium on LVB and proposed merging it with DBIL as the troubled bank was found to have no credible revival plan in place. The central bank further stated that DBS Group Holdings Ltd would bring in an equity of Rs 2,500 crore for the growth of the merged entity.

LVB was placed under the Prompt Corrective Action (PCA) framework in September 2019 considering the breach of PCA thresholds as on 31 March 2019.